# Nuclear Plant Restart Gets $1B Federal Boost for Microsoft Deal
The U.S. Department of Energy has announced significant fede...
The U.S. Department of Energy has announced significant federal funding to support the restart of shuttered nuclear plants, marking a pivotal moment in the nation's nuclear energy revival driven largely by the surging power demands of artificial intelligence and data centers.
The federal support comes as major technology companies like...
The federal support comes as major technology companies like Microsoft are making unprecedented commitments to nuclear energy. Microsoft has pledged $1.6 billion to secure power from Constellation Energy's Three Mile Island facility in Pennsylvania, which is being repowered and rebranded as the Crane Clean Energy Center, with operations expected to commence by 2028.[4] This landmark deal represents a fundamental shift in how the tech industry approaches its energy needs, moving away from traditional renewable sources to secure round-the-clock clean power for AI operations.
## The Palisades Project in Michigan
The federal funding initiative also extends to Michigan's Pa...
The federal funding initiative also extends to Michigan's Palisades nuclear plant, where the DOE has finalized a $1.52 billion loan guarantee to help Holtec International restart the facility.[1][3] This represents the most comprehensive federal support yet for a nuclear plant restart. In addition to the loan guarantee, two rural electricity providers planning to purchase power from the reactor are receiving $1.3 billion in federal grants under a program designed to help rural communities address climate change.[3]
Holtec has been aggressively pursuing the Palisades restart...
Holtec has been aggressively pursuing the Palisades restart since early 2023, when the company applied for federal loan funding after initially purchasing the plant for decommissioning purposes. The company had struggled with the economics of nuclear power in a market dominated by cheaper natural gas and renewable energy, but government support has fundamentally changed the financial calculus. The DOE has disbursed funds in multiple tranches, with the most recent disbursement in June 2025 providing just over $100 million, bringing the total distributed to date to approximately $203.7 million of the authorized $1.52 billion.[1]
## The Broader Nuclear Renaissance
The restart initiatives reflect a dramatic reversal in Ameri...
The restart initiatives reflect a dramatic reversal in America's nuclear policy. After years of stagnation, the nuclear industry is experiencing a resurgence driven by multiple factors. Deputy Secretary of Energy David Turk explained that U.S. electricity demand is expected to grow by 15 percent over the coming years, fueled by increased electric vehicle adoption, booming battery and solar manufacturing facilities, and a massive surge in data centers for artificial intelligence.[3] Nuclear plants offer a critical advantage: they generate electricity continuously without emitting greenhouse gases, complementing intermittent renewable sources like wind and solar.
Both Congress and the Biden administration have committed bi...
Both Congress and the Biden administration have committed billions of dollars in subsidies to prevent older nuclear plants from closing and to support new reactor construction. The Trump administration has continued this momentum, with the March 2025 DOE loan disbursement of nearly $57 million marking the administration's first significant financial commitment to the nation's nuclear revival effort.[1]
## Technology Companies Lead the Charge
Microsoft's involvement signals a watershed moment for nucle...
Microsoft's involvement signals a watershed moment for nuclear energy. The tech giant is not alone in recognizing nuclear power's potential for powering data-intensive operations. Google and Nucor have also committed to developing clean, firm generation capacity that operates 24/7, something existing renewable infrastructure cannot reliably provide.[2]
Constellation Energy has emphasized its confidence in the Th...
Constellation Energy has emphasized its confidence in the Three Mile Island project, noting that the company is investing $1.6 billion of its own capital to restart the plant without relying on state or federal aid, though it may explore DOE loans for improved financing terms.[2] This private sector commitment demonstrates that nuclear restarts can be economically viable when paired with long-term power purchase agreements from major technology companies.
## Economic and Grid Implications
The scale of these projects extends far beyond individual co...
The scale of these projects extends far beyond individual corporate energy needs. The Three Mile Island restart alone is forecast to add nearly $16 billion to Pennsylvania's GDP over two decades, with approximately $2 billion flowing into the economy during the early development phase of engineering, procurement, and construction.[4] The restored capacity will deliver power equivalent to six years of Pennsylvania's forecasted demand growth, providing major reinforcement to the PJM Interconnection, one of the world's largest power markets.[4]
The Palisades restart represents America's first effort to b...
The Palisades restart represents America's first effort to bring a shuttered commercial nuclear reactor back online, subject to U.S. Nuclear Regulatory Commission licensing approvals.[1] The NRC has indicated it expects to issue a final decision on required licensing actions by July 31, 2025, positioning the plant for potential restart in October 2025.[1]
## Looking Forward
The federal funding announcements underscore a strategic piv...
The federal funding announcements underscore a strategic pivot in American energy policy. As artificial intelligence and data centers consume ever-greater amounts of electricity, policymakers and industry leaders have concluded that nuclear energy is essential to meeting clean energy goals while maintaining grid reliability. The combination of federal loan guarantees, grants, and private sector investment represents a comprehensive approach to revitalizing America's nuclear infrastructure for the modern economy.